Here is the e-mini wave chart for the past two days. I am short one unit from 747.50. The market has bounced off of resistance near 750 and should head lower from here. If it doesn't I am working a 747.50 stop that will close my trade. The lowest I can see on the downside for the foreseeable future is725 (green dotted line).The market has been pretty quiet today. I think this is significant in view of the fact that a new bear market low was established this morning. It makes me think that the bulls are about to take control of this market.
3 comments:
Agree with resistance today, but we are making new decade lows and you are calling for a bull market market? Positive economic fundamentals are needed to start this, everything else is a bear market rally. Technical analysis whith all the divergence in the world will humble everyone when price continues lower. Love your blog and the ability to share my opinion as well. See you at 650 next week.
JK
The bear market doesn't have to end for the bulls to take control for a short period of time. That's what makes a bear market rally. Those rallies, if they get moving, can be vicious and will stop out many shorts causing further upside.
...until reality comes back into focus and the bear growls...
i dont understand the point of taking a 'here comes a bear market rally' perspective. over the long term you will book much better gains by constantly trading for continuation, instead of fighting the market trend. we are in a bear market so sell the rallies, sell the rallies, and position your stops so that the time it breaks up you arent taken out for 6 months worth of profits.
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